When the economy is in a recession,the Fed can ________ the federal funds rate,which ________ aggregate demand and ________ real GDP.
A)lower;increases;decreases
B)raise;decreases;increases
C)lower;increases;increases
D)raise;increases;decreases
E)lower;decreases;decreases

Question

Quizplus · Accepted Answer

Lowering the federal funds rate makes borrowing cheaper, encouraging spending and investment, which increases aggregate demand and real GDP.

When the Economy Is in a Recession,the Fed Can ________